King County Real Estate Market Update | January 2024

 In #King County Real Estate Market, #Thoughts, Seattle Real Estate Market Updates
Hey y’all. Zach McDonald, your real estate agent with Real Property Associates, and this is my King County real Estate market update for January, 2024.

King County. It’s a new year and I’m excited because this is our first market update of the year. And today I want to do a couple things. Normally we go through the stats from the previous month, so we’re going to be looking at December 20, 23 stats and we’re going to do that. But before we do that, I want to recap 2023. Since we’re at the end of the year, we get a nice picture of what happened in the King County housing market. So let’s look at the numbers here in King County last year there were 16,584 closed sales, and that’s a pretty good sized drop off from last year. We saw 23.9% drop from 2022 to 2023. Now, if you’ve been following along with these updates or listening to the news, you would know that there’s a lot that’s happened in the housing market in the last, let’s say 18 months or so.Now, new listing activity was down last year, 29.1%. The pending sales amount down 19.9%. Makes sense. There’s not as many listings, not as many sales days on market up 56.3% from the previous year. So 25 days on market.

And I would say that the 16 days on market from 2022 is really factoring in a lot of the crazy frenzy that we had at the beginning of the year, 2022 this year. We never really experienced that. We saw the days on market dip, but not to a crazy three, four days on market and certainly wasn’t prolonged for a significant chunk of the year. I would expect at 2024 we’ll see a shrink in those days on market. But what I want to really point out is the pricing here, because even with all the craziness, 2022 had its ups and its downs, the end of the year finished out at 9.09 for the whole entire year. That was the median sales price for 2022 in King County, the median sales price in 2023 in King County, $880,000 down 3.2%,

And the average down 2.5% was 1,127,000 5 79. Not as big of a drop off as a lot of people were thinking. Now, in 2022, we saw quite a jump in the spring and a free fall into 2023, but things started to stabilize at the beginning of 2023 and really were throughout the year, and that’s why I think the prices are still relatively close to where they were at the end of 2022. And in fact, if we look at the median sales price in 2022 in December, 820,000, and if we look at this year’s 850,000, so we’re actually ending the year in King County ahead of where we were at the end of 2022 and in 2023 in King County. Last stat for us here as we wrap up, this part of the video houses sold over asking price across the board for the whole year 0.6% above asking price.

Now, in 2022, that number was 4.5% above asking price, but in King County and also in Snohomish County. Looking at the other update if you follow along there, both sold above asking price for the whole year. Now let’s look at the data for 2023 here as we wrap up the year, right, we’re wrapping up in December, heading into 2024, which we find ourselves in. Now, we saw a massive drop off again, which is normal from November to December, almost half the amount of listings, but year over year down 17.5%. So we finished out the year with fewer listings than we did last year. We also finished out the year with fewer closed sales, about 14.1% fewer than in 2022. But interestingly, the pending sales picked up. So year over year we saw a 10.1% increase in the pending sales activity in King County despite the dropoffs, which is why we ended the year with lower housing inventory and supply in King County.

So King County, last year we had 2017 homes available for sale at the end of the year and this year, 1,225. So what that is showing us is a 39.3% dip in the supply of housing. And that put us under a month of supply under a month of supply of houses heading into 2024. And what that sets us up for is a hot housing market in the spring because there’s not a lot of houses that it puts a lot of pressure on the prices. And that’s why you typically see prices climbing in the spring, especially when the housing market is more stable or hotter because there isn’t as much on the market. And all this buyer demand typically hits at the beginning of the year. And we’re going to see that here. We are going to see that in 2024. Now, median sales price, I mentioned this earlier, but median sales price in King County to wrap up 2023 was $850,000, and that’s up 3.7% year over year.

And the average sales price in King County was 1,116,517, and that’s up 10% year over year. So from the end of December till now, 10% more and King County fared better than Snohomish County. Snohomish County was just under where it was last year, and King County is in some cases quite a bit higher. And I would say a lot of the jump here, this 10% versus the 3.7%, so median’s, the middle number, an average is pulled up by a larger amount of these big dollar sales. And the east side of Seattle in King County, Bellevue, Samish, Iqua, Kirkland, Redmond, a lot of those places that are more expensive sought pretty massive drop-offs in their prices. But in a lot of cases, those prices have jumped a lot year over year. So I think the average personally is being pulled up by those markets. And the east side of Seattle, in particular 2024 in King County, I mentioned how the east side has been picking up and I think it’s going to continue to pick up.

I also think Seattle is going to continue picking up here as well, because how the people are coming back to work, and I’m hearing this in a lot of scenarios. It’s not necessarily every day, but it’s most of the days. It makes people want to live closer to work. And another thing, another twist to that is if your office and some clients of mine have had offices on both sides of the water and they could choose to be on either side, sometimes they’re told where to go, but I think some people will still choose just to live where they want to live and commute. And so I think the east side has always been desirable. It’s a little bit newer, nicer, and some people are really into the schools on the east side, some of the higher rated schools in the state. But I think as we’re looking at 2024 in King County that things are going to keep picking up.

I think there has been a desire to be in King County, a little bit closer into Bellevue and or Seattle. So that commute’s not quite as long. So 2024, I think is going to be a year where people continue returning a little bit closer or at least considering a move closer into the city. And I also think the 2024 is going to be a year where the housing market continues to improve, and not in a way necessarily that buyers want. Buyers want, I think, to have a better price and more negotiating power. But I think as the economy improves or at least there’s hope that there’s improvement in the economy or that inflation’s under control, I think that’s going to continue to put pressure on the pricing and the inventory that’s available here in King County.

Thanks so much for watching this month’s King County Real Estate market update the first of 2024. If you’re new or haven’t subscribed yet, please consider following along on a regular basis. And if there’s any way I can bring value to your real estate situation, whether you’re buying, selling, or even just considering a move to King County, I’d love to be a resource for you.

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