Seattle Housing Market Watch 06/25/2024

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

Hey all, Zach McDonald, your real estate agent with Real Property Associates, and this is my Seattle Real Estate Market Watch for June 25th, 2024.

Welcome to the summer everyone. It is now warm and sunny here in Seattle. It’s the few months of the year that everybody looks forward to here living in Seattle. And I know I’m looking forward to lots of fun adventures and some trips with the family. But as I’m thinking about the market, I’m thinking about how we are think in the middle of the normal seasonal summer slowdown. Now, let me explain. Earlier in the year, I mentioned that if interest rates were to drop that we would maybe not see the summer slowdown, and we found ourselves hovering around the 7% interest rate mark here all year so far, maybe 6.75, up to seven and a half, but it’s kind of fluctuated in that same range today. Mortgage News Daily’s daily survey has 30 year fixed rates just above 7%, 7.03%. So we’re in this flat, or at least the same zone as we were earlier in the year.

And as a result, we’re starting to see some of the normal market trends that we would see in a given year. The spring was hot, the end of the winter was hot. We saw multiple offers, and to be honest, we’re still seeing multiple offers. In some cases, some houses are selling quicker, others are sitting, some of it’s price dependent, some of it’s location dependent, but the market is not as hot as it was a couple months ago at this point. And I think a lot of that has to do with more inventory coming on the market. So we’ve seen more houses coming on the market the past few months, looking back year over year. So last year we had a very, very small amount of houses come on the market, which is why it was competitive at all during the spring. This year, we saw more houses coming on the market and more buyers as well.

But we’re starting to see now that the amount of houses coming on as outpacing the buyers to some extent. Now, as we look at the amount of pendings that we’ve had recently, we’re starting to see that the houses are moving off the market still and keeping up new listings. Were 774 last week. We had some price reductions though this is a huge, huge key to me. Anytime I see this 446 price reductions, which is up, right? We’re continuing to trend up in the price reductions, which is normal this time of year. So earlier in the year, we typically have lower inventory, there’s some competition, prices are being pushed up, and then if inventory gets to a critical mass or a point where there’s not enough buyers, or at least not enough buyers to keep putting the pressure on pricing, that’s when you start to see some of these price reductions, especially if people are pricing their houses for more earlier in the summer spring than they were maybe earlier in the winter, right?

So if you’re hitting the point where the market’s starting to shift a little bit in that seasonal window, that’s where you’ll see the price reductions. You’ll see houses start to sit on the market for a little while because they were priced towards the higher end of the market. Even though the market had been hot, it was starting to shift. So right now, even this last week, I’ve had a couple different conversations with clients. We listed a house in Marysville and a house in Shoreline, and part of those conversations were about, Hey, the market is slowing down a little bit. Like where do we want to price? How do we want to price? And that’s a big conversation this time of year, earlier in the year, it’s kind of like, yeah, let’s price in line with the lower end of the comparables. And then you probably have multiple offers going to push the price up.

It’s not as much of that right now. And so pricing super low could help you get a quick sale, but you also might end up leaving some money on the table. So depending on the situation, the strategy might be a little different. For pricing listings, this time of year, we’re still seeing some contingent sales. 22 in King and Snohomish County. The contingent sales are where you’ve got to buy and sell at the same time. So you’re essentially buying, but you have to sell the house before you can close on the purchase. The more you see there, the more opportunity I think there is for buyers. So the larger number you see in the contingent line, the more chance that a buyer has to negotiate in their favor. Things like a home sale contingency, pending listings though pending listings are up 841, and that is anything that is either pending inspection or maybe it goes from pending inspection to pending.

And so just to be super clear, these are closer to sold listings. Not all of them are pending for the first time. And that’s why even though we have the 774 new listings, the pending sales, although they’re outpacing that number, doesn’t necessarily mean that all of those new listings are now selling and sold listings 686 here across King in Snohomish County. That is a good number, and we’re nearing the end of the month. So the next week or so, we’ll probably even see more sold listings. But overall, as I’m looking at what’s going on in King, in Snohomish County, I think we’re experiencing, as I mentioned at the beginning, this seasonal summer slowdown. And for buyers, that’s a really great thing. If you’ve had some fatigue, maybe if you started looking in the winter or the spring, or maybe you haven’t even jumped in yet, the summer is usually a pretty great time to be a buyer.

If you’re able to be flexible with your schedule, maybe you’re not traveling as much. Even if you are traveling, you can still finalize a purchase on the road. So I wouldn’t let that stop you. The summer has more options and typically less competition than the fall and the winter and the spring. So of all the times of the year, the summer I think, is the most transparent time to buy. Yes, prices may be a little higher as far as the starting price than they would’ve been in the spring, but that doesn’t mean that’s going to be the sales price. And it also is transparent. You don’t necessarily need to pay five, 10, 20% over asking price in the summer months, at least this year, I don’t think so. If you want to have a little bit more of a transparent price, you’re tired of the multiple offers, this might be that time.

It doesn’t necessarily mean you’re going to pay less for a house than you would’ve with the competition, but at least you have a little bit more clarity. And for sellers, I still think that you can make a sale in the summertime, right? It’s beautiful. Your garden looks great, and your house shows really amazingly. And historically, a lot of sales happen in the summertime. I just would say that you’re not likely going to experience as much of the competition and multiple offer scenarios. Maybe a neighbor might’ve experienced earlier in the year, but that doesn’t mean you’re getting less for your house. It just means that you’re pricing accordingly and negotiating accordingly. So those are my thoughts here for the week. Thanks so much for listening to this week’s Seattle Real Estate Market Watch. If you got value out of this video, please give it a thumbs up and consider sharing it with somebody else that you know who might benefit from it. And if you’re not subscribed to the channel yet, please do so so that you can tune in on a regular basis.

 

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