Seattle Real Estate Market Watch 7/18/23

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

Transcript:

Hey all, Zach McDonald, your real estate agent with Real Property Associates, and this is my Seattle Real Estate Market Watch for July 18th, 2023.

What’s up, everybody? I think right now my mind is very preoccupied with selling my house. And we listed our house on Thursday in Edmonds and I’ll, uh, let you see a little clip of the video, cuz well, I think it’s sweet. Mid-century modern House, south Edmonds location, quiet neighborhood. We’ve loved this house, but I mentioned that we bought another house in Shoreline. It has a swimming pool, which you’re really excited about, but we are selling our house in Edmonds, so if you’re interested, of course, let me know. Uh, or if you know somebody who’s interested, um, just trying to get the word out. I, I listed a client’s house on the same day, so they’re in south or we’re in South Edmonds, they’re in North Edmonds, picnic point area over by Harbor Point in Muckle, Teo. So kind of just as close to our muckle Teo as we are to Shoreline.

And within 24 hours they had an offer. Well over asking price, really favorable terms, no contingencies. It was amazing, right? And here we are, we’re thinking we might not get an offer on our offer review date today. And it’s like, dang it, come on. My wife’s like, why can’t you sell our house for, no, just kidding, she’s not. But I think just seeing that not every house is selling way over asking price or getting multiple offers. I think you know, their house super nicely updated, modern inside. Not a lot to do our house, mid-century modern style, lots of updates, but yeah, definitely could use some more if you wanted it to be more, more modern inside. And so, uh, definitely not flying off the shelves like theirs, but interesting to see the difference. Right? Well over asking price super quick, again, ours getting showings, but not any offers, at least not yet.

So, uh, maybe next week we’ll have an offer and it’ll be off the market, um, but also have another great house in Edmonds, in Meadowdale, kind of in the middle of the two. Again, kind of like ours, updated in some ways, not updated in others. And that one is still, it’s been three weeks on the market, um, at eight 70, I think. Um, also a great house, um, with a, with a great, with great schools nearby walking distance to all the schools. So, um, that one as well, we’ll give that one a little love here, but just the market is not as hot as it was. Everything is not selling immediately. And I think when we listed the Meadowdale house, there were a lot of other houses that came on about the same time. So some of the inventory being delayed this year to the market, and we had the same experience when we listed ours.

There were like all of a sudden six houses that were kind of similar, all listed within a half mile, quarter mile we’re like, what? All of a sudden these houses that there weren’t any and all of a sudden they listed at the same time. So, um, again, supply is a big factor in the amount of offers and interest that each house gets because if there are six houses and eight buyers, well they can spread out the love versus going for the one that’s available. Let’s talk about the stats because I think the, the stats are showing us that, you know, we’re starting to see more in inventory and the activities. I think we’re starting to see more inventory build-up, right? And if you look at the Seattle real estate market update that I did, uh, earlier in the month, you’ll see that, you know, like stuff’s not quite selling as much over asking price inventory is continuing to build up closer to that two months of supply across King and Snohomish County.

And that’s really where we start to see a lot more negotiating power for buyers. When we get around the two-month mark. I don’t think that means we’re gonna see house prices crater like they did last year, but it, it really slows down the upward pressure. It keeps things more neutral and I think that’s probably what we’ll see heading into the fall. And then we’re gonna start to see less inventory, right? So things are gonna tighten up, but right now things are loosening up a little bit for buyers out there. So new listings, 6 78 in the last week. And again, these stats are King and Snohomish County residential stats from the past week, so 678 versus 537 new listings. So again, a lot of new listings, um, coming on the market. Still less than normal for this time of year, but more than we were seeing back on the market.

We saw 75 houses come back on the market. Um, again, a lot of those would’ve been canceled listings, there were 95 canceled listings and most of those come back on the market, um, as new listings to help kinda get some new activity going. List price reductions. Last week we had 257 list price reductions this week, 319. So we’re seeing more price reductions. Again, things have been slowing down a little bit. Um, contingent purchases, 19 versus 20. So contingent purchases still happening in the market. Contingent being you need to sell a house before you buy a house. Um, again, not a huge number, but a possibility. Expired listings 18 versus 23, not quite towards the end of the month, so give it a couple weeks, we might see some more expired, but the lower number of expireds is good. That means stuff is selling, right? If things are expiring, that means listings aren’t even selling after price reductions and things like that.

Pending listings 787 more than the 701 last week. Again, these are closer to sold listings. So some of them are, hey, we just got under contract. Some of them are, Hey, now we’re not pending inspection, we’re just pending. We’re, we’re closer to being sold. Maybe we’re past the inspection period, but we still haven’t closed. And so the pending number isn’t quite the, Hey, we just got a contract, but if there’s, there’s still a gap, but the gap isn’t as large. So without diving into that number too much, I would say we’re probably seeing more new houses coming on than we’re seeing coming off, which is why inventory has been increasing very slightly. But we’ve been seeing more houses building up on the market, sold listing 600 versus 537. And then we mentioned the canceleds already. And I think the biggest thing, there’s, there’s two things I think that are really driving the shift or maybe stagnation in the market all of a sudden.

And I think number one is mortgage rates really climbed over the last month and have really hovered in that seven-ish percent mark. They were over seven now they’ve dropped back down below. Mortgage news dailies data as of yesterday, 6.9%, uh, for the interest rates 30 year fixed, uh, as of last week. I think it was Wednesday last week, 7.09%. So we’ve seen a drop-off, but we’re still hovering around 7%. And I also mentioned last month that we saw prices climb considerably. Rates have also climbed, so it’s just harder to afford a property right now. You’re paying even more for the house, but you’re also increasing your mortgage amount and therefore the monthly payments with interest. So we’ve got that right. Higher interest rates, we also have more supply coming on the market. So more choices, higher interest rates, and a lot of the higher interest rates has to do with some of the inflationary data that we’ve been seeing last, last week’s report was decent, which is why we’ve seen rates bounce down a little bit, but at the same time we’re still seeing a fairly high inflationary environment and there are still concerns that the Fed is gonna continue raising interest rates.

They’re at least keeping that card out there. Like, hey, yeah, probably, maybe, right? Nobody wants to be wrong, so they’re just saying, we might play this card, we probably will, right? But it does keep the market guessing a little bit and especially in the mortgage, mortgage market. So right now, higher rates, higher prices, things are starting to sit a little bit. Some houses like my clients are still going super fast, but a lot of them are starting to sit on the market here this summer. Thanks so much for watching this week’s Seattle Real Estate Market Watch. I hope this information’s valuable to you. And we started doing these videos on a weekly basis last year when the market was shifting and rates were changing and the, we went from super, super hot market coming outta covid to whoa, what the heck is happening right now? And so I’ve kept going with these and I hope that they’re valuable. If you’re getting value out of this content, I’d love you to share it with others. Um, it’s a great encouragement to continue to do these videos and it means the world to me when someone like you reaches out and has questions about buying or selling. So, um, appreciate the support. Thanks so much for watching and we’ll talk to you soon.

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