Seattle Real Estate Market Update | January 2024

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

Happy New Year, everybody. Welcome back to the Seattle Real Estate Market update. I’m excited because 2024 is a new year, and because it’s a new year, I wanted to try something different and we’re going to continue on with these Seattle real estate market updates every single month where we look back at the data from the Northwest multiple Listing service from the previous month, and we do that in every single one of these videos. If you’re ever wondering, where does this data come from, that’s where it’s coming from. But something I want to share is that we are going to start, and this is exciting for me, sharing updates on a lot of the cities in King and Snohomish County. And you’ll see here in the coming days and the coming weeks that we’ll talk about Sam Amish and Bellevue and Everett and Lynnwood and Edmonds.

We’re going to start talking about these different markets specifically because I think there’s demand for it. And for years, people have asked me to make updates about different cities or talk about different places, and I can’t possibly talk about everywhere, so I’m going to let some of you down that live maybe a little farther north or a little bit farther south and King, Snohomish County. But I am doing my best. So this is my attempt to make monthly updates about a lot of different cities and suburbs that make up the Seattle area. I think that’s all I’ve got to say about the market updates, at least for those ones. But I do want to focus in again here on Seattle and Bellevue as we do in these updates every single month. And Seattle and Bellevue make up a large part of the sales in King and Snohomish County.

Now, the median sales price in Seattle was 845,000 to end the year 2023 down 3.4% year over year. I think throughout the year. We had months where Seattle’s median sales price was down a lot more, and we had months where it was actually up year over year, and we’re ending the year in the zone, right? We’re down a little bit, but not a lot. We also in Bellevue, saw quite a big jump. So Bellevue took one of the biggest hits when the interest rates went up. Bellevue obviously is a lot higher price point, but it also saw some of the biggest dropoffs in media and sales price across the board. The east side of Seattle took the biggest hit, but Bellevue being Bellevue took one of the biggest ones. 1,750,000 was the median sales price at the end of December, which is up 23% year over year.

Now, if we look at the days market, we also saw in Bellevue houses selling quicker 16 days on market, Seattle, 19 days on market. So pretty similar there. Statistically, houses were selling relatively close to the asking price. We were seeing an on average, 98.8% in Seattle, 98.6 in Bellevue. And something that I noticed is that there were, it’s normal in December to see fewer listings coming on the market, and we saw that in Seattle we saw 220 listings come on the market, Bellevue 23. Both of those were down year over year, a little bit in Seattle, more substantially in Bellevue. But when we look at the pending sales in both places, there were more pending sales. So Seattle saw a 5.7% uptick in pending sales, and Bellevue saw a 13.8% uptick. And in both cases, there were more pending sales than there were new listings, which is why as we end the month, we find ourselves right around that one month of supply number in Seattle 1.1 Bellevue 0.9 months of supply.

And what that means is that there just aren’t as many houses available for all the buyers. And it also, when we look back at the pending sales, means that there’s more buyer activity here recently, or at least compared to year over year. The buyer versus seller activity is already starting to get out of whack. And that’s what we saw in 2020 and 2021 in the beginning of 2022, is that there were just way more people wanting to buy a house than there were people wanting to sell. And in 2024, I think we’re going to find ourselves an interesting place where buyers have more hope as the economy, or at least we think the economy is getting better or at least inflation’s getting under control. There’s a lot of hope. Interest rates for mortgages is going to drop as we end 2024 maybe towards the summer.

And if sellers or homeowners continue to keep their houses or hold onto them because of those lower rates, the newer buyers or the people wanting to buy are still going to have fewer houses to buy, which was the trend this past year. I’m not sure if we’re going to see a lot of people trading in their lower mortgage rate for a higher rate and maybe a nicer newer house, or if we’re going to see that same trend where fewer people sell their houses. But what I do think is that we’re going to see a lot more buyer activity in 2024. That’s one thing that I’m a lot more confident about. So I think as we go through the year, we’re going to start to see those trends develop, and I’ll talk about them as they happen, but I think that in 2024, there are going to be a lot more first time home buyers.

I think we thought that that was going to be last year where first time home buyers were going to have a chance, but those rates and the rates, the rates have been tough. The rates being higher make it more difficult to afford the mortgage payments or at least make those mortgage payments seem a lot less appetizing. And I know because I looked at mortgage rates and mortgage payments as well myself, we bought a house in 2023 and we sold a house in 2023. And man, I wish I could have that lower interest rate on my new house, but I don’t. And it made sense for us to make the move, but I think there are a lot of people that it hasn’t made sense to make a move like that. So in 2024, I think there will be some more people that go ahead and buy that next house.

They may elect to hold on to their previous house as a rental. We’ll see. But in 2024, I think that there are going to be a lot more buyers entering the market, which is going to, as we see inventory being low, put pressure on the prices in the Seattle area. So 2024, I think we’re going to see we home prices rising in the Seattle area. And I think if you’re somebody who’s thinking about buying, right? We want to talk about application here as well. If you’re a buyer or somebody considering a home purchase, historically, there are more options in the spring and early summer. So there’s just more choices. That’s the historical norm. But you also find yourself typically in a little bit more competition with buyers towards the end of the year. Typically, you have a little less competition. Maybe prices are starting to come down a little bit from the seasonal highs for the year, but you also don’t have as many options.And there’s the trade-off, right? But an interesting part of 2024 is we might start to see those rates creeping down. And so it may be a weird year where we see even more competition towards the end of the year. We’ll see. I wish I had a crystal ball, but I don’t. I think that as we wrap up 2024 though, we’re going to find ourselves in a more competitive market than we are in right now, and I wouldn’t be surprised to see prices take a nice jump in 2024.

Thanks so much for tuning into this month’s Seattle Real Estate Market update. I hope that this video brought a lot of value to your life, and if you made it to the end, I know you got some value out of it. So a couple of requests. Number one, if you know somebody who could benefit from this video, please consider sharing it with them. And number two, if you are looking to make a home purchase in the Seattle area or the Bellevue area, please don’t hesitate to reach out.

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