King County Real Estate Market Update | September 2022

 In #King County Real Estate Market, #Market Updates, #Thoughts

In this King County Real Estate Market Update, I share King County stats from August 2022 along with my own perspective on the market.

You can check out last month’s King County housing market update here – King County Real Estate Market August 2022

Transcript:

Hey y’all. Zack McDonald, your real estate agent with Real Property Associates and this is my King County Real Estate market update for September, 2022. If you’re new to these updates, we’re looking back at the King County data from the multiple listing service here and we’re looking back at August, 2020. Twos data. It’s fresh right off the press for you here today. and so as we jump into these numbers, I wanna point out that I’ve been doing these weekly market watches recently and if you want to get a little bit more of my thoughts on a regular basis, but also projecting into the future or a little bit more real time, I’d love for you to check those out. I’m a little less about the exact numbers and more about some of the trends, so shorter videos, a little bit different coverage but I think helpful as we’re kind of going through the weekly grind.

And these I still think are great to be able to look back and see how it all wrapped up and how those trends played out as far as the numbers go. so if you’ve been watching these, take a look at those and I think they do a really good job of complimenting each other. Let’s look at the King County stats here from last month and as we’re looking at ’em, we saw a 13% decrease year over year in listings. So last year we had more new listings in the month of August and we did this year. and interestingly, we had 21.9% fewer new listings this month than we did last month. So I think right now, as the market’s shifting a lot, the month over month comparison is a little bit more important. And it’s interesting to see how many fewer new listings came on and it’s normal to see a little dip sometimes in August.

but we had quite a bit of dip from last month, but pending sales are up month over month, not year over year though, year over, year down 24.6%, but up 10% from last month. So I’ve been talking about on my weekly market watches that we’ve seen fewer new listings and more pending sales here recently as the market’s kind of recalibrating and that’s reflected here. I think it’ll be even more pronounced next month, but right now we’re looking at that shift already starting to happen. and close sales down 31.3%, but up 9.4 from last month. So right, again, we’re just starting to see that trend continuing to reverse itself. days on market up 58.3% 19 versus 12 year over year and 19 versus 13 last month. So we’re seeing that houses are sitting on the market a little bit longer, which is why we’ve been seeing the price reductions trying to encourage the buyers to participate in the market.

And I think if we look at average sales price, we can see that reflected. median sales price in King County’s about the same as it was last month. it’s up 5.3% year over year, which is great. If you’re a seller in King County and you didn’t sell during the hottest time of the year early spring, you can still sell for more than you would’ve last year. average sales price a little over 1,000,001, $1,116,678. That’s a mouthful to try to say by the way. 2.7% up year over year. So not as big of a jump there on the average price. And it is down from 1.163 last month. Now, percent of asking price, right? So we’re talking about prices coming down a little bit as houses have been sitting on the market, I think the house last year, 5.6% over asking price in King County, 99% of asking price in King County this month.

So a little bit different, 6.3% drop there on that percent of the listing price received. If you’re a buyer, you’re not really getting much of a discount there, but you are removing the competition, right, and having a little bit of wiggle room. And I think that’s the biggest change right now for buyers. And one of the bigger opportunities is price, right? Prices have come down a little bit, but the fact that houses are selling below, asking price, also hints that there are, is less activity, right? And we can see that evidence by pending sales versus new listings. And so there’s a little more negotiation room and I think that’s really, really good for buyers right now. Now, inventory has been creeping up the amount of houses on the market as we’ve had more new listings for multiple months in a row than we’ve had pendings.

We’ve seen that number climbing last month in King County. We saw that number go backwards. So if we look at year over year numbers, we’ll see 106% more new listings, which is a big number, right? Or a big percentage I’ll give you that. last year 0.6 months of supply versus 1.6 months of supply. But if we look at last month, we had 1.8 months of supply in King County and this month 1.6. So we did see the numbers change and go down again, more pendings recently than we’ve had new listings, which is why I think we’re seeing some of that shift. Let’s highlight a few spots in North King County before we wrap up this update. And I think we’ll start with Seattle because Seattle is a large piece of King County and it’s in Seattle, $909,000 median sales price last month, 5.1% up year over year.

Average sales price was 99.7% of the listing price. it’s a little bit smaller if you look at the original asking price, but very close months of supply, 1.3 months compared to the county average of 1.6 and 16 days on market. So houses are selling a little faster in Seattle proper than in some of the other places. If we look at Shoreline, $860,000 median sales price, and that’s up 7.5%. Good job shoreline, just over asking price on average for a house in Shoreline, 1.6 months of supply and 13 days on market. If we look over at Kenmore, we’ll see a median sales price of $1,050,000, and that’s up 12.9% year over year. a little over asking price, just 0.1%, right? So a hundred percent essentially of asking price in Kenmore 2.1 months of supply and 15 days on market. We’ll look at one more here in Lake Forest Park and Lake Forest Park, million $35,000 for the median sales price, 13.7% jump year over year, 1.1% above asking price.

And I think a large part of that is inventory is still pretty low in Lake Forest Park 0.6 months of supply. So as some places have had more and more inventory building, there’s just not as many houses in Lake Forest Park if we’re honest about it. so that’s part of why inventory is low. but houses are still taking 18 days on average to sell. So it’s not like everything is selling super fast. So we’re gonna get this update across the finish line, and I’m gonna end with this. I think we’re seeing more and more pending sales, fewer new listings, and I think what’s happening right now is we’re seeing buyers and sellers are kind of getting onto the same page about what’s been going on here over the past four to five months. And I think that what’s going to happen here as we head into the fall, and again, this is a prediction, I don’t have a crystal ball, so I’m doing my best, but I think historically we see inventory picking up in September a little bit, and then dying off into the fall and into the winter.

And I see that trend continuing. I don’t think we’re gonna have a massive spike of new listings. What I would bet is we’re gonna see things tighten up again. We’re gonna see the inventory numbers go down. I think there’s gonna be some more competition. And so if you’re somebody who’s thinking about buying here, going into the fall and early winter, I think you’re gonna be facing competition. Again, I, I don’t suspect it’s gonna feel like it’s felt this summer as we go into the fall and kind of get back into the swing of things, I do think we’ll have a little initial bump of listings. So if you are wanting to buy sooner is gonna give you more options and probably less competition to kind of keep this feel as a buyer. But I do suspect as we head into the winner, we may start to see these numbers decline to the point where there’s actually competition again, which I think’s crazy to say that already, but I do think that’s my, that might be where we’re headed.

So I think that’s kind of crazy to say as I’m saying it, but that might be where we’re headed. So again, buyers right now, there’s opportunities to get a house for below asking price and also have better terms and more contingencies in the contract. And for sellers right now, you can still sell your house for more than you would’ve last year. So if you missed the chance, now’s the time to do it. Thanks so much for watching my King County market update for September, 2022. If you got some value out of this video, please give me some love with a thumbs up or a comment. And if you wanna talk more about your situation, whether you’re thinking about buying or selling in King County, I’d love to be a resource for you.

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