Seattle Housing Market Watch 11/28/23
Hey y’all. Zach Mcdonald, your real estate agent with Real Property Associates, and this is my Seattle Housing Market Watch for November.
We had a slow week this week in the Seattle housing market, which is to be expected with the Thanksgiving holiday falling towards the end of last week really, we had a half week where people were searching for a house. A lot of people were traveling, and to be honest, holiday weeks are not the best to list a house, and we’ll see that later on in a year when it comes to Christmas. Typically, we don’t have a lot of houses coming on the market the week of Christmas either. In fact, we probably only have a few more weeks here where we’ll see a steady flow of listings being this week, next week, and the second week of December. It should slow down to a screeching halt as we hit Christmas and head into the new year. Typically, those couple weeks, people are traveling, taking vacations and not planning to list their house.
And let’s be honest, most people that sell this time of year are people that need to sell, especially heading into the rest of the holiday season. So if you’re somebody thinking about buying a house, this is typically when you have some of the better opportunities, and I’m not meaning the most opportunities, but you have people that are motivated to sell. They are motivated because they have to sell versus wanting to sell. So in a lot of cases, these are people that maybe did just buy a new house, but more often it’s somebody that is getting a divorce or relocating out of the area, or maybe it’s somebody who has a loved one that passed away and they’re the executor of the estate. And all of those cases, those are people that need to sell versus want to sell.
Now, if we look at the market here over the past week, you’re going to get to see what we just talked about, and that is that the new listings were scarce in King and Snohomish County. Over the past seven days, we had a hundred and twenty-four residential listings come on the market. We had 200 and ninety-three last week and last week we talked about how that 200 ninety-three was substantially below where we were in the same week last week. So we saw quite a drop-off from the big drop-off. There were also fewer list price reductions. I would suspect some of the ones last week were heading into the holiday week, hoping that maybe we’ll get the house sold right before Thanksgiving this week, only a hundred and thirty-one price reductions contingent sales about the same 12 contingent sales versus 13 contingent sales. Again, this is a time where sellers are open to contingent offers, and that is typically after two to three weeks on the market. There are few houses selling immediately after coming on the market in the contingent status, but there still are opportunities for those that need to buy before they sell.
Let’s look at pending listings. Now, we did have quite a drop off and pending listings. It makes sense when you have such a drop off in the new listings. But pending listings, 443 this past week versus 575 the previous week, we also had a drop off in the sold listings. It was a short week as we talked about already, so I’m not surprised to see the off there, but 315 sold listings versus 471 the previous week. I would suspect this week that we’re in right now. As we wrap up November and hit the beginning of December, we’ll have a few more closings to wrap everything up. Usually we have stuff closing right before the end of the month or just after the beginning of the new month, so I would expect that this next update will have more listings here. But this is the slow time, so we aren’t going to see as many listings in November as we did sell in October, and I think we’re still going to be down considerably when we look back at the November numbers from last year once we get those here next week.
So again, the housing market in Seattle is stable. We’ve seen that change here over the past six to seven months as things have sorted themselves out. Interest rates are still kind of in that seven and a quarter range. Mortgage News Daily has 7.3% for the mortgage rates as of today on their daily survey, and that’s only down 0.03% from last week. So not much of a change, but rates have found their home, at least we hope they have. And for a lot of people, they’re predicting that we saw the peak already for the mortgage rates, and then we’re going to start to see those coming down. And as long as inflationary data remains consistent and the Feds messaging remains consistent, hopefully we’ll see things stay where they’re at or continue to get better as we head into 2024.
So I would expect that as we see more inventory coming on in the new year, if rates stay where they’re at or start to come down, we’re going to start to see a little bit of buildup there. I predict in January it’s going to be a really low inventory environment as some of the new listings come on and some of the new buyers come on, if the rates remain close to where they’re at or start dropping. We’re going to see quite the frenzy heading into 2024.
Thanks so much for tuning into this week’s Seattle Housing Market Watch. I hope that it was valuable for you. If it was, please consider subscribing and if you know somebody who could benefit from this information, please share it with them.